<u>Answer:</u>
<u>If there is 1 hour of production: </u>
Cars produced by Japan = 5/8 = .625 cars
HD TV produced by Japan = 15/10 = 1.5 HD TVs
Further,
Cars produced by US = 5/6 = .83 cars
HD TV produced by US = 15/5 = 3 HD TVs
So,
Opportunity cost of a car for Japan = 1.5/.625 = 2.4 units of HD TVs
Opportunity cost of car for US = 3/.83 = 3.61 units of HD TV
Since, Japan has lower opportunity cost of producing cars, so Japan has comparative advantage in producing cars.
Opportunity cost of a HD TV for Japan = .625/1.5 = .42 units of car
Opportunity cost of a HD TV for US = .83/3 = .28 units of car
Since US has lower opportunity cost of producing HD TVs, so US has comparative advantage in producing HD TVs.
Answer: The fair market value of the free tour to Costa Rica is a taxable income.
Professor Vanessa Lazlo won the free tour in a draw, where a prize is awarded by chance.
Publication 525 of the IRS defines taxable and non taxable income.
The IRS lists winnings from raffles and lotteries under Other income.
It also declares that the fair market value of winnings from raffles and lotteries are winnings from gambling. Hence the fair market values of non cash prizes are taxable and must be included as income.
I believe its the right sided button.
The middle button would be to scroll and the left would be to select something.
Answer:
Option "B" is the correct answer to the following statement.
Explanation:
According to excess business loss rules, $500,000 is deductible to joint return and $250,000 deductible for a single taxpayer or single return.
In this situation, Max is a single taxpayer so, he would receive a maximum $250,000 loss deduction under excess business loss rules.
Therefore, Max's maximum deductible amount is $250,000.
